Legal Question in Banking Law in India

A has borrowed an sum amount from "J" Bank towards housing loan . "A" has not paying the installment amounts to "J" Bank regularly. On that "J" bank treated the loan account of "A" as N.P.A. J bank has sent the demand notices to the "A" --- As the matter stood thus, on day the bank officials ( Bank Manager, Surveyor, and his staff) went to the house of the "A" knocked the door when A opened the doors since she is alone in her house -- The Bank officials criminally trespassed into her house they not showing their identity, then A objected them on that they pushed the A, A felt on the ground sustained simple contusions, they threatended her to pay the amount and fled away.

In this connection - A has filed a criminal case against the bank officials in police station, Police has registered the case U/Sec. 448, 323, 506 IPC.

In this regard the Bank officials defend the allegations made by "A" - that they have a right U/Se SARFACIE ACT.

But Sec. 13(2) (4) SARFACIE Act says the bank has right to take over the property from Borrower if the loan is N.P.A... (after 60 days of notice) after obtained the orders from the Not below the Rank of Matropolitian Magistrate.

But in this matter - the bank officials not followed the said procedure move in blindly.

In this connection MY QUESTION IS - THE PETITION/COMPLAINT OF (A) IS MAINTAINABLE AGAINST THE BANK (J) OFFICIALS OR NOT.

Dear Sirs please clarify my doubt.....clearly ( if it maintainable in which circumastance and if not maintainable in those circumastances)


Asked on 5/05/14, 5:44 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

05.05.2014

Dear Sir / Madam,

It is prima facie evident that "A' being a defaulter on the repayment of the housing loan, entitles the Bank Officials to initiate recovery proceedings against A as per the prevailing recovery auction guidelines of the SARFAESI Act. Although A's complaint petitiion is maintainable, it will only slightly delay the property auction process and nothing more. A's property will be auctioned off and the loan amount will be duly recovered by the Bank from the auction proceeds.

Regards,

Read more
Answered on 5/05/14, 8:36 am


Related Questions & Answers

More Banking Law questions and answers in India